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PPL Corp (PPL) Earnings In Line with Estimates, Revenues Lag
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PPL Corporation (PPL - Free Report) reported first-quarter 2017 adjusted earnings of 62 cents per share, in line with the Zacks Consensus Estimate. Earnings, however, declined 7.46% year over year.
On a GAAP basis, the company reported earnings per share of 59 cents in the quarter compared with 71 cents a year ago. The difference between GAAP and operating earnings in the reported quarter was due to a loss of 3 cents from Foreign currency-related economic hedges.
Total Revenues
PPL Corp.’s total revenue of $ 1,951 million missed the Zacks Consensus Estimate of $2,057 million by 5.2%. Revenues also decreased 3% year over year.
UK Regulated: Adjusted earnings increased 15.4% on a year-over-year to 45 cents per share. The surge was attributable to higher prices from Apr 1, 2016.
Kentucky Regulated: Adjusted earnings decreased 12.5% on a year-over-year to 14 cents per share. This was primarily because of lower sales volumes due to unfavorable weather.
Pennsylvania Regulated: Adjusted earnings in the reported quarter decreased 14.3% per share to 12 cents, driven primarily by higher operation and maintenance expense along with higher depreciation expense.
Corporate and Other: It includes unallocated corporate-level financing and other costs. The segment reported a loss of 9 cents for the quarter compared with the loss of 2 cents for the quarter ended Mar 2016.
Operational Highlights
PPL Corp.’s total operating expenses decreased 2.8% year over year to $ 1,155 million in the reported quarter.
The company reported an operating income of $796 million, down 3.3% from $823 million a year ago.
Interest expenses slid 3.1% to $217 million from $224 million a year ago.
Financial Position
As of Mar 31, 2017, PPL Corp. had cash and cash equivalents of $409 million compared with $341 million as of Dec 31, 2016.
Long-term debt (excluding debts due within one year) was $17,958 million as of Mar 31, 2017, compared with $17,808 million at the end of 2016.
In the first three months of 2017, net cash flow from operating activities was $135 million compared with $557 million in the prior-year period.
Guidance
PPL Corp. reaffirmed its 2017 adjusted earnings guidance in the range of $2.05 to $2.25 per share, with the midpoint at $2.15.
The midpoints of the 2017 adjusted earnings guidance for UK Regulated, Kentucky Regulated and Pennsylvania Regulated are $1.18, 58 cents and 50 cents, respectively. For the Corporate & Other segment, the midpoint of the full-year projection is at a loss of 11 cents per share.
The company expects 5% to 6% compound annual earnings growth per share from 2017 through 2020, measured against the 2017 earnings midpoint of $2.15 per share.
Peer Releases
NiSource Inc. (NI - Free Report) reported first-quarter 2017 operating earnings of 71 cents per share, surpassing the Zacks Consensus Estimate of 65 cents by 9.2%.
DTE Energy Company (DTE - Free Report) reported first-quarter 2017 operating earnings of $1.79 per share, which surpassed the Zacks Consensus Estimate of $1.57 by 14%.
CMS Energy Corporation (CMS - Free Report) reported first-quarter 2017 adjusted earnings of 71 cents per share, surpassing the Zacks Consensus Estimate of 65 cents by 9.2%.
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PPL Corp (PPL) Earnings In Line with Estimates, Revenues Lag
PPL Corporation (PPL - Free Report) reported first-quarter 2017 adjusted earnings of 62 cents per share, in line with the Zacks Consensus Estimate. Earnings, however, declined 7.46% year over year.
On a GAAP basis, the company reported earnings per share of 59 cents in the quarter compared with 71 cents a year ago. The difference between GAAP and operating earnings in the reported quarter was due to a loss of 3 cents from Foreign currency-related economic hedges.
Total Revenues
PPL Corp.’s total revenue of $ 1,951 million missed the Zacks Consensus Estimate of $2,057 million by 5.2%. Revenues also decreased 3% year over year.
PPL Corporation Price, Consensus and EPS Surprise
PPL Corporation Price, Consensus and EPS Surprise | PPL Corporation Quote
Segment Results
UK Regulated: Adjusted earnings increased 15.4% on a year-over-year to 45 cents per share. The surge was attributable to higher prices from Apr 1, 2016.
Kentucky Regulated: Adjusted earnings decreased 12.5% on a year-over-year to 14 cents per share. This was primarily because of lower sales volumes due to unfavorable weather.
Pennsylvania Regulated: Adjusted earnings in the reported quarter decreased 14.3% per share to 12 cents, driven primarily by higher operation and maintenance expense along with higher depreciation expense.
Corporate and Other: It includes unallocated corporate-level financing and other costs. The segment reported a loss of 9 cents for the quarter compared with the loss of 2 cents for the quarter ended Mar 2016.
Operational Highlights
PPL Corp.’s total operating expenses decreased 2.8% year over year to $ 1,155 million in the reported quarter.
The company reported an operating income of $796 million, down 3.3% from $823 million a year ago.
Interest expenses slid 3.1% to $217 million from $224 million a year ago.
Financial Position
As of Mar 31, 2017, PPL Corp. had cash and cash equivalents of $409 million compared with $341 million as of Dec 31, 2016.
Long-term debt (excluding debts due within one year) was $17,958 million as of Mar 31, 2017, compared with $17,808 million at the end of 2016.
In the first three months of 2017, net cash flow from operating activities was $135 million compared with $557 million in the prior-year period.
Guidance
PPL Corp. reaffirmed its 2017 adjusted earnings guidance in the range of $2.05 to $2.25 per share, with the midpoint at $2.15.
The midpoints of the 2017 adjusted earnings guidance for UK Regulated, Kentucky Regulated and Pennsylvania Regulated are $1.18, 58 cents and 50 cents, respectively. For the Corporate & Other segment, the midpoint of the full-year projection is at a loss of 11 cents per share.
The company expects 5% to 6% compound annual earnings growth per share from 2017 through 2020, measured against the 2017 earnings midpoint of $2.15 per share.
Peer Releases
NiSource Inc. (NI - Free Report) reported first-quarter 2017 operating earnings of 71 cents per share, surpassing the Zacks Consensus Estimate of 65 cents by 9.2%.
DTE Energy Company (DTE - Free Report) reported first-quarter 2017 operating earnings of $1.79 per share, which surpassed the Zacks Consensus Estimate of $1.57 by 14%.
CMS Energy Corporation (CMS - Free Report) reported first-quarter 2017 adjusted earnings of 71 cents per share, surpassing the Zacks Consensus Estimate of 65 cents by 9.2%.
Zacks Rank
PPL Corp. has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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